Dovish cues from US Wall Street and disappointing Chinese macro data caused equities to bleed, macro data from EU was positive but does little to change price action as investor sentiment shows bearish inclination.
President Trump tweeted overnight that “talks with China are going very well” while the meetings were extended for a third day in Beijing, gave Asian stocks a boost to three week high. This combined with no surprises in President Trump’s Oval Office address earlier in the day seemed to help push equities higher in the Asian session.
Asian stock indices ended the day mixed with Japan’s Nikkei up 1%, Hong Kong’s Hang Seng Index was up 0.2%, and the Shanghai Composite was down about 0.2%. The ASX 200 index finished the session 39 points or 0.7% higher to 5722.4 after initially starting the day in the red. The index has also managed to finish at its best levels in more than five weeks.
Global market today is experiencing difficult shades of investor sentiment and market performance in the equity and forex market scape. The trading session began for the day with increased risk appetite in the market on cues from Wall Street which saw bullish price action in equities following positive US NFP data, and Fed Chair Jermoe Powell’s comments which hinted at the possibility of a pause in the Fed’s 2019 rate hike plans significantly boosting investors risk appetite.
Equity and forex markets continue to trade positive on the last trading session of the week. Also, increased risk appetite amid thin trading volumes owing to the holiday season for the second consecutive session has helped European equities trade positive despite ongoing political and economic issues that put a dovish dent on European indices yesterday.
US Dollar is underbid significantly as risk appetite increased in equity and forex markets following headlines that indicated China & U.S. were able to come to an understanding during the sideline talks in G20 summit which resulted in both parties agreeing to temporary ceasefire for next 90 days while they begin negotiations a new and come to a deal.